Assessing Productivity of Personal Selling Effort in India : An Econometric Approach

There were not many studies dealt with productivity issues of personal selling effort in FMCG sector around the world. A modest attempt has been taken to assess the productivity of this effort by considering two brands (A & B) of two firms in India. Time-series data on sales and different marketing mix variables (advertising, sales force, promotion, distribution and price) in rupees have been collected for both the brands in question. Regression models (two multiplicative and one linear) are taken into consideration and fitted on data to estimate the adjusted sales response function to personal selling effort. Results suggest that the productivity of personal selling effort is higher for brand B than brand A and varies between the two brands. Findings will assist the managers to invest resources in this effort along with other elements in marketing mix more precisely